Roku introduces new streaming sticks to attract budget-conscious users, supporting its ad-driven business model.
The new devices are smaller and can be powered by a TV’s USB port, addressing user preferences for hidden setups.
Roku maintains competitive pricing against Amazon and Google to expand its user base and enhance advertiser reach.
As Roku navigates the tightrope between user experience and its crucial advertising revenue, the company’s latest hardware refresh looks like a calculated move to keep viewers locked into its platform. Roku’s two new streaming sticks are aimed squarely at the budget-conscious end of the market, reinforcing the hardware foundation upon which its ad business is built.
Hardware as ad gateway: The new entry-level Roku Streaming Stick ($29.99) and the 4K-capable Roku Streaming Stick Plus ($39.99) replace the outgoing Roku Express and Express 4K+ models at the same price points. Roku claims the new sticks are over 35% smaller than competing devices and, crucially, can often be powered directly by a TV’s USB port, reducing cable clutter.
This addresses a pain point for the 90% of streamers who, according to Roku’s own research, prefer devices hidden behind the TV. These usability improvements aim to make adopting and using Roku hardware as frictionless as possible, ensuring users land directly within the ad-supported Roku operating system.
Enticing newcomers: By simplifying its low-end lineup and standardizing features like the voice remote even on the cheapest $30 model, Roku is polishing the main on-ramp for new users. Maintaining aggressive pricing, directly competing with devices like Amazon’s Fire TV sticks and undercutting the Google TV Streamer, is key to capturing the broad user base necessary to deliver scale for advertisers.
Balancing ads and appeal: This hardware push comes amid ongoing industry discussion about Roku’s platform monetization strategy. The company relies heavily on advertising revenue generated through its OS, including home screen ads and sponsored placements, to subsidize its low hardware costs. While Roku executives maintain they strive for non-interruptive ad experiences, enhancing the hardware’s value proposition without raising prices can be seen as a tactic to bolster user satisfaction and retention, ensuring viewers remain engaged with the platform even as ad formats evolve.
Ecosystem expansion: The new sticks weren’t the only news designed to keep users within the Roku environment. The company also unveiled updated Roku TV models for 2025, featuring technical enhancements like mini-LED backlighting, alongside new software features for content discovery and new battery-powered smart home cameras. This broader push underscores Roku’s strategy to be the central operating system for the living room, increasing touchpoints and potential ad inventory.
The new Roku Streaming Stick and Streaming Stick Plus are available for pre-order in the U.S. now and will ship starting May 6. Availability in the UK is expected in June, with other international markets to follow in the coming months.
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